Business Milestones: What to Expect at Each Stage

When I started my wedding and event planning business 25 years ago, I was so excited about it and about being my own boss that I could barely sleep. Coming from a career in the federal government where I had to work long hours and follow policies and procedures that often did not make logical sense to me, I was thrilled with the idea of calling the “shots” and following my dream to massive success. However, I had no idea what would be required of me as an entrepreneur.

Preparing for business ownership

I did not want to fail, so I spent several years preparing. Preparation aside, I had no idea what to expect in my first year of business, as I was too busy learning the industry, hustling to bring in clients, serving clients, and making money to worry about long term. I just wanted to make it to the end of the first year and then figure out the next steps. I did not realize that planning for the future would assure me the success I desired.

It was not until the end of my second year that I actually started paying attention to future business milestones. I had made it through the learning process of the first two years and had a little more clarity than when I started. However, it would have been helpful if I knew what to expect during each milestone in the growth of my business. Early in my business career, I learned everything the hard way. I have always believed that when I learn something in such a painful way, it is meant to be shared. So, here is what I experienced, learned from others, and researched about milestones at various stages of your business growth. While our journeys may be similar, they are not the same. Hopefully, this information will help you no matter what stage of growth you are experiencing. Planning for the future prepares you for success.

YEAR ONE—Learning

This year is for learning, building, and organizing. At this stage, you are wearing many hats—business owner, accountant, bookkeeper, marketing and advertising person, social media coordinator, and the person who services the client. You work long days and nights. Your main interest is in obtaining clients, providing services to the clients, learning your industry, and honing your craft. You will make mistakes, but these mistakes will help you to grow. If funds are available, it may be helpful to attend seminars or workshops, hire a qualified business coach, or seek a mentor.

In the first year, you may lack the confidence you need to adequately run your business, serve your clients and charge for services. If you were previously employed, this may be the year you transform from an employee mentality to that of an entrepreneur. Those roles are entirely different.

YEAR THREE—Growing

This is a growth year. Your business is now established. You have adequately learned about the industry, business operations, and your client base is steadily growing. You now have two years under your belt, and you know what is needed to create systems and processes to run the business more efficiently. You may even be ready to hire an assistant to help with the workload, because you are still doing all of the business tasks.

You have more clarity about your target market and can streamline your services to fit the needs of your niche. You can clearly articulate your brand to others. You may still invest the majority of your revenue back into the business, but you may be able to pay yourself a salary.

YEAR FIVE—Continued growth

You are achieving goals and booking enough clients to pay yourself and a staff person. At this stage, you may even think about additional services. The addition of new services is the perfect time to begin building your team to provide client services and assist with administrative tasks. Your time can then be spent on growing the business.

YEAR 10—Longevity

Now is the time to celebrate your success. You have a pretty predictable cash flow but are still focused on bringing in additional business. You have brand loyalty, which creates a steady flow of clients. Your team can handle the bulk of the tasks. This allows you the freedom to be the visionary for your company. You continue to maintain your success and find charitable ways to give back to your industry. You begin to think about your legacy and your personal impact on the industry.

YEAR 15—Planning for the future

Even though you should be planning your exit strategy from the day you open your doors for business, year 15 is perfect for giving serious thought to what you want to do with your business in the next five to ten years. You have spent years building, growing, and maintaining the business. You have built a stellar reputation and brand for your company and you provide quality service. You have streamlined your processes and systems to be even more efficient.

This is the perfect time to review where you are to determine where you want to be in the next few years? What changes need to be made? What new services do you want to incorporate? What contributions do you want to make? How much longer do you want to work? What will be your legacy?

YEAR 25—Celebrating and making choices

When you reach this stage, it’s time definitely to celebrate. At this stage, the owner may consider consolidating with another company, selling the business, or bringing in a partner or manager. Some owners may still want to work in the industry, but reduce the size of their company and client base to make it more manageable. For others, this may be the time they desire to retire, and for some, it is a time to expand into other areas.

- Shelby Tuck-Horton, MWP™, Exquisite Expressions, Mitchellville, Md.